Interest rates and inflation drive stock market returns in Sri Lanka.
The stock market in Sri Lanka is influenced by factors like interest rates, inflation, exchange rates, and factory production. These factors can impact how much money investors make from their investments. By looking at data from 2006 to 2015, researchers found that interest rates and factory production have a negative effect on stock market returns, while inflation and exchange rates have a positive effect. This information can help investors in Sri Lanka make better decisions to improve their stock market returns.